The French Ministry of Economy and Finance has decided that Bitcoin users must declare their revenues to tax authorities. Even though Bitcoin is not recognized as a currency in France, revenues generated from transactions with the digital currency will still be taxed.
The announcement coming from the French authorities is incredibly similar to what the IRS said a few weeks ago in the United States, CoinDesk reports.
The ministry will make some differences, however. For instance, those who earn small sums, or do this at irregular intervals of time, will be treated with tolerance by the tax authorities.
“All taxpayers are required to declare all their revenues, including those originating from abroad. This said, there is a certain tolerance [from the state authorities] regarding minor and irregular revenues, for instance from occasional sales,” said a spokesperson with the French ministry.
Bitcoins have an unclear legal status in France, which makes it confusing when it comes to taxing Bitcoin related revenues. Even so, the French don’t want to miss out on a possible source of income, so they’re going to have to come up with a plan on how to implement the tax plan.
Last year, French central bankers issued a warning against the risks of trading Bitcoins given the increase volatility of the cryptocurrency.